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FTC v MCKESSON CORP Click to find out why . . .



Keywords & Phrases
CaseNo: FVMC97674, CourtCode: FED, CourtName: FEDERAL TRADE COMMISSION, Plaintiff: FTC, State: DC Washington D.C., UniqueCaseRef: LCD>FVMC97674, Merger, Market, Wholesalers, Drug, Competition, Price, Firms, United States, Commission, Act, Antitrust Laws, Fringe, Coordination, Entry, Customers, Drug Wholesaling, Transactions, Preliminary Injunction, Injunctive Relief, Efficiencies, Ftc, Federal Trade, Relevant Product Market, Relevant Geographic Market, Purchasing, Acquisition, Coordinate Pricing, Merged Firms, Manufacturers, Ftc Act, Amerisource, Proposed Merger, Defendant Mckesson, Injunction, Clayton Act, Federal Trade Commission , ContentID: 120247493

Case Documents
1   COMPLAINT
[ see first page and extracted highlights below  ] ItemID: 117871
5 pages
HTML
2 1998-03-09 TRIAL BRIEF
[ see first page and extracted highlights below  ] ItemID: 117872
48 pages
PDF
Total Documents: 2 documents , 53 pages
Price: $ 24.95


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1 . COMPLAINT

EXTRACTED KEY WORDS
ACT
FTC ACT
AMERISOURCE
PROPOSED MERGER
DEFENDANT
COURT
DEFENDANT MCKESSON
COMPETITION
INJUNCTION
CLAYTON ACT
UNITED STATES
FEDERAL TRADE COMMISSION
PENNSYLVANIA AVENUE
ACQUISITION
DISTRICT
COMPLAINT
PRELIMINARY INJUNCTION
PURSUANT
ATTORNEYS
ADMINISTRATIVE PROCEEDINGS
WASHINGTON
PLAINTIFF
ENJOINING
CONSUMMATION
VIOLATE
LIKELIHOOD
RELIEF
BUSINESS
COMMERCE
                        UNITED STATES DISTRICT COURT
                       FOR THE DISTRICT OF COLUMBIA)

                         FEDERAL TRADE COMMISSION,
                    Sixth and Pennsylvania Avenue, N.W.
                     Washington, DC 20580, Plaintiff,

                                     v.

                              McKESSON CORP.,
                              One Post Street
                      San Francisco, California 94104,

                                    and

                         AMERISOURCE HEALTH CORP.,
                                P.O. Box 959
               Valley Forge, Pennsylvania 19482, Defendants.
                                  Civ. No.

   COMPLAINT FOR PRELIMINARY INJUNCTION PURSUANT TO SECTION 13(b) OF THE
   FEDERAL TRADE COMMISSION ACT

   Plaintiff, the Federal Trade Commission ("FTC" or "Commission"), by
   its designated attorneys, petitions the Court, pursuant to Section
   13(b) of the Federal Trade Commission Act ("FTC Act"), 15 U.S.C.
   53(b), for a preliminary injunction enjoining defendant McKesson
   Corporation ("McKesson"), including its domestic and foreign agents,
   divisions, subsidiaries, affiliates, partnerships, or joint ventures,
   from acquiring through a merger or otherwise any stock, assets, or
   other interest, either directly or indirectly, from AmeriSource Health
   Corporation ("AmeriSource"); thereby maintaining the status quo during
   the pendency of an administrative proceeding, challenging defendant's
   proposed combination, that will be commenced by the Commission
   pursuant to Section 5 of the FTC Act, 15 U.S.C. § 45, and Sections 7
   and 11 of the Clayton Act, 15 U.S.C. §§ 18 and 21.

                           JURISDICTION AND VENUE

   1. Jurisdiction is based on Section 13(b) of the FTC Act, 15 U.S.C.
   53(b) and 28 U.S.C. §§ 1337 and 1345. Venue is proper under Section
   13(b) of the FTC Act; 28 U.S.C. § 1391(b) and (c); and Section 12 of
   the Clayton Act, 15 U.S.C. § 22.

                                THE PARTIES

   2. The Commission is an administrative agency of the United States
   Government established, organized, and existing pursuant to the FTC
SNIPPETS:
  • UNITED STATES DISTRICT COURT
  • FOR THE DISTRICT OF COLUMBIA)
  • Washington, DC 20580, Plaintiff,
  • AMERISOURCE HEALTH CORP.,
  • COMPLAINT FOR PRELIMINARY INJUNCTION PURSUANT TO SECTION 13OF THE
  • FEDERAL TRADE COMMISSION ACT
  • Jurisdiction is based on Section 13of the FTC Act, 15 U.S.C. § 53and 28 U.S.C. §§ 1337 and
  • Venue is proper under Section 13of the FTC Act; 28 U.S.C. § 1391and; and Section 12 of the
  • The Commission is an administrative agency of the United States Government established,
  • Defendant McKesson is a corporation organized and existing under the laws of the state of
  • Defendant McKesson is engaged in commerce, as "commerce" is defined in Section 4 of the FTC
  • that the enjoining thereof pending the issuance of a complaint by the Commission and until
  • Upon a proper showing that, weighing the equities and considering the Commission's likelihood
  • On March 3, 1998, the Commission authorized the commencement of an action under Section 13of
  • Defendants McKesson and AmeriSource have advised the Commission that they will delay
  • In authorizing the commencement of this action, the Commission determined that such an

  • 2 . TRIAL BRIEF

    EXTRACTED KEY WORDS
    MARKET
    WHOLESALERS
    DRUG
    COMPETITION
    PRICE
    FIRMS
    DEFENDANTS
    UNITED STATES
    COMMISSION
    ANTITRUST LAWS
    FRINGE
    ACT
    COORDINATION
    ENTRY
    CUSTOMERS
    DRUG WHOLESALING
    TRANSACTIONS
    INJUNCTIVE RELIEF
    EFFICIENCIES
    FTC
    PRELIMINARY INJUNCTION
    FEDERAL TRADE
    RELEVANT PRODUCT MARKET
    RELEVANT GEOGRAPHIC MARKET
    PURCHASING
    ACQUISITION
    COORDINATE PRICING
    MERGED FIRMS
    MANUFACTURERS
    
    PUBLIC VERSION              UNITED STATES DISTRICT COURT
                                FOR THE DISTRICT OF COLUMBIA
    
    FEDERAL TRADE COMMISSION,                      ))
                                     Plaintiff,    )
                     v.                            )     Civ. No.
                                                   )
    CARDINAL HEALTH, INC. and                      )
    BERGEN-BRUNSWIG CORP.,                         ))
                                     Defendants. )))
    FEDERAL TRADE COMMISSION,                      ))
                                     Plaintiff,    ))
                     v.                            )     Civ. No.
                                                   )
    McKESSON CORP. and                             )     FILED UNDER SEAL
    AMERISOURCE HEALTH CORP.,                      ))
                                     Defendants. )
    
    
                      MEMORANDUM IN SUPPORT OF PLAINTIFF'S MOTIONS
                                FOR PRELIMINARY INJUNCTIONS
    
    
    
    
    MELVIN H. ORLANS                                     WILLIAM J. BAER
    Attorney                                             Director
    Office of the General Counsel                        RICHARD G. PARKER
    Federal Trade Commission                             MICHAEL E. ANTALICS
    Washington, D.C. 20580                               RICHARD LIEBESKIND
    (202) 326-2475                                       Attorneys
                                                         Bureau of Competition
                                                         Federal Trade Commission
                                                         Washington, D.C.  20580
                                                         (202) 326-2821
    
    March 9, 1998
    
    
    
                                                              Table of Contents
    
                                                                                                       
    
    Table of Authorities ............................................................................
                                                                                                     
    
    Preliminary Statement
                                                                                                       
    
    SNIPPETS:
  • SECTION 13OF THE FEDERAL TRADE COMMISSION ACT ESTABLISHES A
  • INTEREST STANDARD FOR GRANTING INJUNCTIVE RELIEF
  • EACH PROPOSED MERGER VIOLATES THE ANTITRUST LAWS
  • Drug Wholesaling Is a Relevant Product Market
  • Drug Wholesalers Provide a Unique Service
  • Direct Purchasing and Self Warehousing Are Not Viable Options
  • The Mergers Will Reduce Price Competition
  • Fringe Wholesalers Cannot Constrain the Merged Firms
  • Expansion by the Fringe Will Not Defeat Anticompetitive Conduct
  • The Market is Insulated From Entry or Expansion
  • Defendants' Asserted Efficiencies Cannot Save these Transactions
  • Brown Shoe Co. v. United States,
  • FTC v. Bass Bros.
  • Clayton Antitrust Act
  • Court to enjoin both proposed transactions pursuant to Section 13of the Federal Trade
  • Section 13of the FTC Act authorizes the Commission to seek, and empowers this Court to grant,
  • Section 13further provides that the Commission must commence its administrative proceeding
  • information technology drove both customers and wholesalers to expand nationwide.
  • Wholesalers typically require more prompt payment from customers than manufacturers require
  • The United States Is A Relevant Geographic Market.
  • McKesson and Cardinal Will Be More Likely To Coordinate Pricing.
  • The potential for anticompetitive coordination here is not hypothetical or theoretical.
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